NDSU Extension Service - Ramsey County

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Preparing for Your 2019 Taxes

Preparing for Your 2019 Taxes

 

                Our tax system has undergone many, many changes recently that will mostly impact your 2019 taxes.  Some individuals did increase their charitable giving, and prepaid property taxes and other business expenses at the end of 2017 to take advantage of deductions that are going away or being reduced but we will see the greatest changes on our 2019 taxes.

                Under the tax law, there’s a $10,000 deduction limit on all of your state and local taxes, including property taxes. Meanwhile, the standard deduction has been increased to $12,000 for individuals, $18,000 for heads of households and $24,000 for married couples filing jointly.  That higher allowance for deductions will decrease the amount of taxes paid by couples especially.

                There are seven new income tax brackets: 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent and 37 percent so you may find yourself in a new tax bracket.    Also you will no longer be able to deduct moving expenses related to a job change – those active members of the military will still be able to do so.

                The 529 tax-advantaged college-savings vehicle — whose earnings are free from federal and, often, state taxes — also underwent a change. Money in these accounts under the old tax rules could only be used for qualified higher-education expenses.  Starting next year, account holders can use 529 funds — up to $10,000 a year — to pay for tuition for elementary or secondary public, private or religious school.

                No matter the claims, changing tax laws is never simple so check with a tax professional to know which changes impact you and how to make that change work in your favor.

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